Lehigh Valley Real Estate Blog

Lehigh Valley Home Buyers Are Getting Discouraged!

The inventory of homes on the market is large! The prices are skyrocketing down! These are some of the things being said about Lehigh Valley Real Estate.

In the past few weeks, a few of the Lehigh Valley Home Buyers that I am working with put everything on hold. They went out multiple times looking at homes and gave up. They just didn't find the ideal home, out of the current inventory, and will look again when more listings come on the market.

Last week, I listed a really nice house and we received 13 showings in the first few days. It was under contract within a week. The home buyers are watching and waiting.

Lehigh Valley Home Sellers, what are you waiting for? Contact me for a free consultion about selling your home. Lehigh Valley Home Buyers must have a house under contract by 04/31/10 to receive the tax credit.

Make Your Lehigh Valley Home Eye-catching, Inexpensively

There are many inexpensive ways to make your Lehigh Valley Home more appealing

There are a million ways to improve the look of your home, some are more expensive than others. If you are thinking of selling your home or already have your home on the market here are some tried and true, inexpensive ways to improve your home and make it more appealing to a potential Lehigh Valley Home Buyer.

§ Paint. Painting a home is something that anyone can do themselves, or hire a painter to do. Fresh paint on the interior and exterior of a home makes it instantly appear clean and fresh.

§ Clean & De-clutter. Remove clutter, family photos and other personal items and clean and organize your home. Clean your carpets.

§ Repair & replace. Have a broken window? Fix it. Does your screen door squeak, oil the hinges. Look at your home with a fresh set of eyes and fix what looks broken or is broken. Duct tape may be fine for you, but probably not a prospective buyer.

These are just a few things that you can do yourself. It is a competitive Lehigh Valley Real Estate market out there and to sell your home quickly and for the most money it has to look its best.

FHA Will Allow Mortgage Insurance on Properties Owned Less Than 3 Months

 
HUD (Department of Housing and Urban Development) has announced that on February 1st, 2010, they will allow the FHA to Relax the Rule Restricting Mortgage Insurance on homes owned by the home seller less than 90 days.

This new ruling will allow Lehigh Valley Home Buyers to purchase properties they may not have been able to purchase in the past.

The past restrictions would not allow mortgage insurance on a home that was being sold within 90 days of being purchased.

In other words, if an investor purchased a property, remodeled it, then put it back on the market in 50 days, an FHA Mortgage could not be obtained on the property. The seller had not owned the property longer than the FHA requirement of 90 days.

The above scenario allows the house to be on the market for 40 days and possibly sold before the FHA Home Buyer could even qualify for the mortgage.

The new ruling should also attract Lehigh Valley Property Investors who wish to purchase rehab houses, clean them/fix them up, then quickly sell the home. It allows more home buyers in the market during a shorter turn-around time.

The full text of the waiver is on www.hud.gov

Selling Your Lehigh Valley Home? Choose the Right Realtor!

Take time to choose the right broker when selling your Lehigh Valley Home

When preparing to sell your home it is important to find a real estate professional that will best suit your needs.  A warm handshake and a friendly smile is all well and good but if you want to sell your home pick a broker that is experienced and knowledgeable, someone that will do the best job for you.  When selecting your Lehigh Valley Real Estate Agent here are a few things to keep in mind:

Data.  Get a prospective Lehigh Valley Realtor to bring in a copy of what they have listed and closed.  They can present you with an MLS report that displays their inventory.

References.  Get references from a potential Realtor and call them.  Find out what other people’s experience with a particular Realtor has been.

Price.  Get an evaluation of your property.  A solid real estate professional will be able to detail what has been selling and for what price.  He will be able to evaluate your home and your location, giving you a value for your home that will help sell it not deter people from looking at it.

Plan.  What does your Realtor plan to do for you in terms of marketing, sales, listing, etc.  Make sure he has a plan for your house and find out what he is willing to do to get it sold for you.

Lehigh Valley Real estate is often a person’s most valuable asset.  Do your legwork and choose the best broker for your home.  He or she should be a salesperson.  If they can sell themselves to you perhaps they are halfway to selling your home for you as well.

Visit www.lehighvalleyhomeseller.com for more information.

Remodeling? Lehigh Valley Home Exterior Improvements Give More Bang for the Buck

Lehigh Valley Home Exterior improvements give more of a return when remodeling

There is an annual report that examines the cost versus value for home remodeling.  The report is helpful for those who are considering making improvements to their homes, especially if their home is one that they consider selling in the near future.  Historically, bedrooms and bathrooms are where people consider spending their money but the return on the remodel investment is not necessarily there.

According to the 2009 Remodeling Cost vs. Value Report the best return for your money are exterior improvements that often are lower cost projects to begin with.  Adding decks, replacing siding, new doors and windows are among projects that recoup the most money when re-selling a home.  The return on these projects is typically 80% or more.

The annual report shows how important first impressions are.  If you are considering Selling Your Lehigh Valley Home make sure that the exterior is as eye catching as it can be.

Click here to learn more about remodeling costs versus value at The National Association of Realtors’ website.

Government Pressure Expected to Help Reduce Foreclosures

The government is putting pressure to decrease foreclosures. The Lehigh Valley doesn't have as many foreclosures as other parts of the country but this may be good news to some home owners.

With unemployment figures on the rise, the number of foreclosures is expected to keep rising over the coming months and the federal government is trying to do something about it.  President Obama created legislation in February that was expected to help those facing foreclosure, yet the programs set in place are reported to have been enforced sluggishly by many of the lending institutions.  The pressure is starting this week.

The Federal Government is saying “Help these people out!” to the 71 financing companies that are participating in the program.  Teams of three people are being sent  to monitor the eight largest companies, and these teams will be requested to submit reports twice a day on their progress.

Another part of the problem has been incomplete paperwork on behalf of the borrowers.  Those that qualify for assistance need to complete their paperwork to move forward on getting assistance.  Under the mortgage assistance plan borrowers who qualify can get 2% rates for up to five years, quite a healthy boost for homeowners facing foreclosure.  Borrowers will be  communicated with to help them complete their part.

For more information on the government’s plan to enforce help for those facing foreclosure, click here.

Do You Want to Sell Your Lehigh Valley House? Take Action!

If you want to Sell Your Lehigh Valley Home, pay attention to the details

In today’s competitive real estate market it is important to pay attention to the details if you want to sell your home.  If you want to sell your property, consider choosing a Realtor who is experienced and knowledgeable about your area, what is selling and what people are paying.  A Custom Market Analysis (CMA) is essential for establishing fair market value for your home.  The right real estate agent will price your home appropriately and competitively.

If you choose to go it alone remember a few things: the current Lehigh Valley Real Estate Market, pricing your home accordingly, the condition of your home, and the volume of buyers looking at real estate in your area.  If you want your home to sell within a reasonable time frame, price it right.  If you need to be on the higher end of the price spectrum your home needs to be in exceptional condition.

Remember, it is a competitive real estate market out there.  If you want your Lehigh Valley Home to sell quickly  it must not only be priced correctly but be in better shape than other houses in the same price range.

Visit www.LehighValleyHomeSeller.com for more information.

Be careful What You Spend on Remodeling

Take a look at the cost vs. value when taking on a Lehigh Valley Home remodel project

Be careful what you spend these days when you are thinking about remodeling your Lehigh Valley house.  Home values are down and so are the recovered costs of remodeling.  In 2005, at the peak of the real estate market, approximately 87% of the cost of a remodel would be recouped in the sale of a home.  Today’s real estate market is recovering approximately 64% of the remodel costs.  Everybody is watching their wallets, so if you are considering a remodel think carefully.

While remodel costs are down it is important to remember that home values are down too.  Unless you want to stay in your home for a long time you cannot count on recovering costs of a major remodel. Carpet and paint are always a great thing to do if considering selling a home but make sure to keep them neutral in color. More extensive projects will probably not net a higher selling price versus the cost of doing them. 

The most cost effective remodel items today are: Roofing, siding, windows, and doors.  Similarly, redoing a basement or attic is recommended instead of adding an addition.  These items are recommended because a Lehigh Valley Home Seller will recoup a greater percentage of the cost when they sell their home.

For more information on current cost versus value click here.

Lehigh Valley Short Sale

Considering selling your Lehigh Valley Home in a Short Sale?

Unfortunately, although not as bad as some other areas of the country, the Lehigh Valley has been hit by some home sellers that need to sell their house for less than they owe on it. A Short Sale means that the home seller is "shorting" the bank and paying off the mortgage for less than what is owed on the home.

In order for this type of "Short Sale" to succeed, the bank must approve the sale and agree to the accepted payoff of the mortgage. 

A lot of Lehigh Valley Short Sales fall apart because the bank never responds to the offer on the home.
 
The home buyer gets impatient and finally gives up and goes after another house. The wasted time has put the Home Seller Closer to Foreclosure. There may not be enough time to find another buyer and start the process over.

Long & Foster has partnered with Platinum Group Services in order to facilitate the Short Sale Process. The Platinum Group will take over all communications with the bank and make sure all required paperwork from the seller and buyer is submitted. 

Contact Me for more information.
 

The Rent to Own Scenario in Lehigh Valley

The rent-to-own scenario can work out for both the Lehigh Valley Home Buyer and the Seller

The real estate market has led to some creative financing techniques, one of which is a rent to own scenario.  While rent-to-own has been around for a long time, today it is helping many nervous Lehigh Valley Home Sellers get a deal done.  In essence the rent-to-own scenario is seller financing.  It is important to work the specifics out in a rent-to-own situation.  Items that need to be addressed are:

§ The percentage of the rent that goes toward the down payment

§ Which party pays for major repairs to the home

§ Which party takes care of the basic upkeep of the property

§ What happens to the down payment money if the buyer changes his mind

A typical rent-to-own scenario takes a percentage of each months rent to put toward a down payment on the home.  As soon as the down payment money is collected and reached its goal then the potential buyer can qualify for a mortgage.  The seller has to cover his bases so that he is not out if the buyer changes his mind while at the same time a buyer has to look out for his best interest as well.  If planned accurately and followed through diligently the rent-to-own scenario can work out well for everyone in the valley.